Appraisal Method Of Depreciation

AAA

DEFINITION of 'Appraisal Method Of Depreciation'

A form of depreciation calculation that is based upon appraisal value. The appraisal method of depreciation is calculated by appraising the value of the asset being depreciated both at the beginning and end of the depreciation period. The difference between the appraised values constitutes the amount of depreciation that can be taken.

INVESTOPEDIA EXPLAINS 'Appraisal Method Of Depreciation'

The appraisal method of depreciation assumes that the value of the asset being depreciated is decreasing over the term. If this is not the case, then no depreciation will be reported. Furthermore, this method of depreciation calculation is generally not recognized by GAAP principles.

RELATED TERMS
  1. Appraisal Approach

    A procedure for determining an asset's value. The appraisal approach ...
  2. Accounting

    The systematic and comprehensive recording of financial transactions ...
  3. Accrual Accounting

    An accounting method that measures the performance and position ...
  4. Appraisal

    A valuation of property (ie. real estate, a business, an antique) ...
  5. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  6. Appraiser

    A practitioner who has the knowledge and expertise necessary ...
Related Articles
  1. Active Trading

    An Introduction To Depreciation

  2. Forex Education

    Depreciation: Straight-Line Vs. Double-Declining ...

  3. Taxes

    Avoid Capital Gains Tax On Your Home ...

  4. Fundamental Analysis

    Taking Stock Of Discounted Cash Flow

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center